Rising Charlotte home prices enhance rent to own home sales

Rising prices of Charlotte homes have created a favorable atmosphere for the Rent to own home seller. Rent to own homes have long been thought of as a workaround for those with credit issues, low down payment funds, or self employed. All of these variables make it hard for the rent to own buyer to acquire conventional funding. This is the basis of the standard rent to own market, and what has created the industry.

The game in rent to own has changed for some investors, and more so for homebuyers looking at this option. With a handful of markets growing in value at extreme rates, rent to own has changed in complexion, let me show you how.

When you rent to own or lease purchase a home, you enter a 2-5% down payment with the owner, and you lock in a buying price for the home. You pay like a tenant for a period of 1 or 2 years, and the rent has a percentage levied against the balance. This retained money will only go toward a purchase if you complete the deal at the end of the term.

In this way many homebuyers enter like speculators, and this becomes profitable in neighborhoods where you can lock in a price better than the future price at the time of close.

In Charlotte, like most of Florida, California, Arizona, and Oregon the prices are fast rising. A buyer than can enter an option deal on a home at a fair market value can stand to get a pretty good deal once the price rises.

If I lock in a 2 year term on a home for $150,000 and the value of the home is in the range of 130-150,000, then as 2 years passes in these growth markets, I likely stand to get a very good deal in the future home market.

Charlotte is in a phase of particular growth, and this new advantage has spawned a lot of opportunity for rent to own buyers. If you are able to find an honest good deal, then you will likely have a great deal on your hands once two years passes.

The advice we give to make sure this advantage leans in your favor is to research the area and know its future development. The addition of nearby malls, theaters, parks, or quality housing can be the key to a nice price when it comes time to buy.

Charlotte is just one place that rent to own works for buyers, look into it in your city if the market is strong, and use it to lock in a price now and build equity today.